DBS Group Holdings (SGX:D05) - Share price, News & Analysis

Q: What is the Fair Price of D05 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

D05 (SGD30.21) is trading below our estimate of [[fair value]] (SGD61.22)

D05 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	3/6
Past Performance	4/6
Financial Health	6/6
Dividends	4/6

D05 Stock Overview

DBS Group Holdings Ltd provides financial products and services in Singapore, Hong Kong, rest of Greater China, South and Southeast Asia, and internationally.

Rewards

Trading at 50.7% below our estimate of its fair value

Earnings are forecast to grow 13.07% per year

Earnings have grown 7.5% per year over the past 5 years

Risk Analysis

Unstable dividend track record

DBS Group Holdings Competitors

Oversea-Chinese Banking

SGX:O39

S$51.2b

United Overseas Bank

SGX:U11

S$44.5b

First Abu Dhabi Bank P.J.S.C

ADX:FAB

د.إ203.4b

National Australia Bank

ASX:NAB

AU$89.0b

Price History & Performance

Summary of all time highs, changes and price drops for DBS Group Holdings
Historical stock prices
Current Share Price	S$30.21
52 Week High	S$37.49
52 Week Low	S$29.18
Beta	1.14
1 Month Change	-2.86%
3 Month Change	-16.01%
1 Year Change	2.06%
3 Year Change	13.57%
5 Year Change	46.29%
Change since IPO	55.72%

Recent News & Updates

Jun 13

Is Now The Time To Put DBS Group Holdings (SGX:D05) On Your Watchlist?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Mar 24

DBS Group Holdings (SGX:D05) Will Pay A Larger Dividend Than Last Year At S$0.36

DBS Group Holdings Ltd ( SGX:D05 ) will increase its dividend on the 22nd of April to S$0.36. The announced payment...

Shareholder Returns

	D05	SG Banks	SG Market
7D	1.0%	0.5%	0.2%
1Y	2.1%	-1.4%	-3.4%

Return vs Industry: D05 exceeded the SG Banks industry which returned -1.4% over the past year.

Return vs Market: D05 exceeded the SG Market which returned -3.4% over the past year.

Price Volatility

Is D05's price volatile compared to industry and market?
D05 volatility
D05 Average Weekly Movement	2.2%
Banks Industry Average Movement	4.0%
Market Average Movement	4.8%
10% most volatile stocks in SG Market	11.1%
10% least volatile stocks in SG Market	2.2%

Stable Share Price: D05 is less volatile than 75% of SG stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: D05's weekly volatility (2%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1968	33,000	Piyush Gupta	https://www.dbs.com

DBS Group Holdings Ltd provides financial products and services in Singapore, Hong Kong, rest of Greater China, South and Southeast Asia, and internationally. It operates through Consumer Banking/Wealth Management, Institutional Banking, Treasury Markets, and Others segments. The Consumer Banking/Wealth Management segment offers banking and related financial services, including current and savings accounts, fixed deposits, loans and home finance, cards, payments, investment, and insurance products for individual customers.

DBS Group Holdings Fundamentals Summary

How do DBS Group Holdings's earnings and revenue compare to its market cap?
D05 fundamental statistics
Market Cap	S$76.72b
Earnings (TTM)	S$6.49b
Revenue (TTM)	S$14.20b

12.0x

P/E Ratio

1.4x

P/B Ratio

Is D05 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
D05 income statement (TTM)
Revenue	S$14.20b
Cost of Revenue	S$0
Gross Profit	S$14.20b
Other Expenses	S$7.71b
Earnings	S$6.49b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 04, 2022

Earnings per share (EPS)	2.52
Gross Margin	100.00%
Net Profit Margin	45.70%
Debt/Equity Ratio	189.3%

How did D05 perform over the long term?

See historical performance and comparison

Dividends

4.8%

Current Dividend Yield

55%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is D05 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for D05?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for D05. This is calculated by dividing D05's market cap by their current preferred multiple.
What is D05's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	S$76.72b

D05 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	0.9x

Price to Earnings Ratio vs Peers

How does D05's PE Ratio compare to its peers?

D05 PE Ratio vs Peers

The above table shows the PE ratio for D05 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	12.3x
O39 Oversea-Chinese Banking	11x	11.8%	S$51.2b
U11 United Overseas Bank	11.4x	13.5%	S$44.5b
FAB First Abu Dhabi Bank P.J.S.C	13.7x	3.1%	د.إ203.4b
NAB National Australia Bank	13.1x	4.7%	AU$89.0b
D05 DBS Group Holdings	12x	13.1%	S$77.7b

Forward PE

Price-To-Earnings vs Peers: D05 is good value based on its Price-To-Earnings Ratio (12x) compared to the peer average (12.3x).

Price to Earnings Ratio vs Industry

How does D05's PE Ratio compare vs other companies in the Asian Banks Industry?

Price-To-Earnings vs Industry: D05 is expensive based on its Price-To-Earnings Ratio (12x) compared to the Asian Banks industry average (8.7x)

Price to Earnings Ratio vs Fair Ratio

What is D05's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

D05 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12x
Fair PE Ratio	15x

Price-To-Earnings vs Fair Ratio: D05 is good value based on its Price-To-Earnings Ratio (12x) compared to the estimated Fair Price-To-Earnings Ratio (15x).

Share Price vs Fair Value

What is the Fair Price of D05 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: D05 (SGD30.21) is trading below our estimate of fair value (SGD61.22)

Significantly Below Fair Value: D05 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: D05 is good value based on its PEG Ratio (0.9x)

Discover undervalued companies

Future Growth

How is DBS Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: D05's forecast earnings growth (13.1% per year) is above the savings rate (1.8%).

Earnings vs Market: D05's earnings (13.1% per year) are forecast to grow faster than the SG market (12.6% per year).

High Growth Earnings: D05's earnings are forecast to grow, but not significantly.

Revenue vs Market: D05's revenue (12.4% per year) is forecast to grow faster than the SG market (7.8% per year).

High Growth Revenue: D05's revenue (12.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: D05's Return on Equity is forecast to be low in 3 years time (14.2%).

Discover growth companies

Past Performance

How has DBS Group Holdings performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

7.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: D05 has high quality earnings.

Growing Profit Margin: D05's current net profit margins (45.7%) are higher than last year (43.8%).

Past Earnings Growth Analysis

Earnings Trend: D05's earnings have grown by 7.5% per year over the past 5 years.

Accelerating Growth: D05's earnings growth over the past year (19%) exceeds its 5-year average (7.5% per year).

Earnings vs Industry: D05 earnings growth over the past year (19%) underperformed the Banks industry 24%.

Return on Equity

High ROE: D05's Return on Equity (11.4%) is considered low.

Discover strong past performing companies

Financial Health

How is DBS Group Holdings's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: D05's Assets to Equity ratio (11.9x) is moderate.

Allowance for Bad Loans: D05 has a sufficient allowance for bad loans (115%).

Low Risk Liabilities: 80% of D05's liabilities are made up of primarily low risk sources of funding.

Loan Level: D05 has an appropriate level of Loans to Assets ratio (60%).

Low Risk Deposits: D05's Loans to Deposits ratio (81%) is appropriate.

Level of Bad Loans: D05 has an appropriate level of bad loans (1.3%).

Discover healthy companies

Dividend

What is DBS Group Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.77%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: D05's dividend (4.77%) is higher than the bottom 25% of dividend payers in the SG market (2.34%).

High Dividend: D05's dividend (4.77%) is low compared to the top 25% of dividend payers in the SG market (6.22%).

Stability and Growth of Payments

Stable Dividend: D05's dividend payments have been volatile in the past 10 years.

Growing Dividend: D05's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (54.6%), D05's dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: D05's dividends in 3 years are forecast to be well covered by earnings (47.7% payout ratio).

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

12.3yrs

Average management tenure

CEO

Piyush Gupta (61 yo)

12.58yrs

Tenure

S$13,575,462

Compensation

Mr. Piyush Gupta has been the Chief Executive Officer of DBS Group Holdings Ltd and DBS Bank Ltd. since November 9, 2009. Mr. Gupta served as the Chief Executive Officer of South-East Asia & Pacific region...

CEO Compensation Analysis

Compensation vs Market: Piyush's total compensation ($USD9.79M) is above average for companies of similar size in the SG market ($USD5.00M).

Compensation vs Earnings: Piyush's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: D05's management team is seasoned and experienced (12.3 years average tenure).

Board Members

Experienced Board: D05's board of directors are considered experienced (4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31